PG&E has rejected a $2.5 billion offer from the city of San Francisco to buy the utility's local power lines.
In a letter to city officials, PG&E said the city’s offer was too low. The utility also said that the city underestimated substantial costs and, if PG&E sold the assets to the city, customers would see their rates rise.
"Our San Francisco-based facilities are not for sale and to do so would not be consistent with our charter to operate or our mission to serve Northern and Central California communities," said PG&E CEO and President Bill Johnson in the letter.
He went on to say that they "disagree with the suggestion that PG&E's San Francisco customers would be better served by another entity."
San Francisco made the offer to buy the lines in early September, but the city has been considering the purchase since the utility filed for Chapter 11 bankruptcy protection in January due to mounting liability for wildfires sparked by its equipment. The city has argued that it could provide safer, more reliable and more affordable service for its residents.
Mayor London Breed and San Francisco City Attorney Dennis Herrera said in a joint statement that they would continue to pursue the acquisition.
"We aren't surprised by PG&E's response so far. We're also not giving up," the statement said. "Now more than ever, it is clear that we must take back control of San Francisco's electric service and achieve energy independence."
Breed and Herrera went on to assert that PG&E’s assessment of the deal was "inconsistent with the comprehensive analysis the city and its financial advisors have done on our proposal."